The new stablecoin BFUSD, which Binance has released, provides a dividend of 19.55% each year
Crypto consumers looking for a way to earn money without actively trading may find the stablecoin appealing.
With a guaranteeing ratio of 105.54%, the stablecoin BFUSD runs with a total supply ceiling of 20 million tokens. Customers may earn incentives via Binance’s program without having to stake or lock up their cash, as stated by Binance.
A stablecoin, such as BFUSD, is a cryptocurrency that aims to keep its value constant and is often linked to a more established currency, such as the US dollar. On decentralized finance systems, they are most often used for lending, trading, or earning interest.
It seems that the stablecoin may be used as collateral with a collateral ratio of 100%, according to the material on the Binance website, which makes it an interesting alternative. But where the produce came from and how long it will last are still mysteries.
With its BUSD stablecoin, Binance experimented with a stablecoin in the past. In 2023, the currency encountered considerable difficulties.
The New York Department of Financial Services oversees the issuance of Paxos’s BUSD, which was intended to maintain a 1:1 peg to the US dollar with reserves kept in cash or US Treasuries.
U.S. regulators, notably the SEC, began investigating whether BUSD would be considered an unregistered securities in February 2023, leading Paxos to be ordered to cease issuing BUSD.
Market capitalization for BUSD fell as a result of regulatory action, falling from over $16 billion in early 2023 to less than $3 billion by year’s end.
In addition to USDT (Tether), BFUSD (Binance Foreign Currency), and USDT (Tether), Binance redirected its attention to other stablecoins when it halted fresh issuance. The future of BUSD was unclear, but it kept serving as a trading instrument and collateral in DeFi inside the Binance ecosystem despite its troubles.
